What All Does Your Insurance Policy Cover?

You know about your premiums and deductibles, but do you know what all your insurance covers? 

As a trusted local independent insurance agency, Bosworth & Associates in Tyler, Texas, believes insurance shouldn’t be confusing. You should know and understand what your insurance covers. 

Insurance is there to protect you, your loved ones, and your business in the event of the unexpected—whatever form that might take. Having a better idea of what different insurance terms mean is helpful when it comes to knowing what’s covered and how to choose the right insurance policies for you. 

Here’s a breakdown of insurance terms and a brief explanation of the insurance coverage: 

Personal Insurance Coverage 

Personal Insurance is just like it sounds—insurance that covers your personal needs and those of your family/home. Here’s a brief list of specifics covered under personal insurance: 

• Auto insurance that covers risks for bodily injury liability, personal injury protection, property damage liability, comprehensive collision, and uninsured motorist coverage.
• Boat Insurance covers your recreational boats in the case of an accident or emergency.
• Dwelling Fire Insurance is especially important if you’re a renter so that you can protect your investment.
• Farm and Ranch Owner Insurance. This type of insurance covers both small and large farms.
• Homeowner’s Insurance. In addition to the home itself, this type of insurance covers attached structure insurance, personal property, personal liability, and loss of use.
• Recreational Vehicle Insurance covers accidents, damage, or theft to your recreational vehicle – often abbreviated as RV – including motorhomes, trailers, campers, etc. People are spending more on recreational vehicles than ever before these days, and it’s important to have RV insurance coverage in case of an accident or theft.
• Renter’s Insurance. Covers personal belongings for damages or theft.

In addition, if you need more coverage, personal liability umbrella coverage is a good option. 

Umbrella insurance is just like it sounds—a broader “umbrella” policy coverage for things your regular insurance doesn’t cover. For example, suppose your primary policy doesn’t fully cover you in the event of a lawsuit. If you want broader coverage, an umbrella policy can cover instances of false arrest, libel, slander, invasion of privacy, and more. 

Umbrella Insurance is about protecting your assets and property against the unexpected when your primary insurance policy isn’t fully enough. 

Life Insurance Coverage 

Are you the provider for your family? Do they rely on you for financial security? What happens if you suddenly pass away? Will your loved ones be financially looked after? 

Life insurance gives you the peace of mind that you’re taking care of your family in the event of your unexpected death. We don’t like to think about it, but the reality is we need to be prepared for all eventualities. Knowing your family will be taken care of in the event of such a terrible, unexpected occurrence is invaluable. 

Three types of life insurance are term life, whole life, and universal life insurance. 

Term life insurance is your basic policy. It’s often more affordable and covers a specific period of time with a static premium for the time of the term. Usually 10, 15, 20, 25, or 30 years. It’s considered a good option, particularly for young people. 

Whole life insurance is considered “permanent” life insurance with a locked premium through the term of the policy. 

Universal life insurance is also a permanent coverage but has more flexibility, a death benefit, and a tax-deferred cash value. 

Health Insurance Coverage 

Health insurance covers all the important features you and your loved ones need, such as hospitalization, mental health insurance, laboratory services, emergency and ambulatory services, and more. 

• Group Insurance—Just like it sounds, group insurance is purchased by a business to cover a group of employees for their health insurance.
• Disability insurance is especially important if you are the sole monetary provider for the family. What would your family do if you suddenly couldn’t work? Disability insurance makes sure you can make your house payments and take care of your family, even if you become disabled and unable to work.
• Long-term and short-term care medical insurance is helpful if you’re injured and recovering for the short or long term. It ensures you’re financially covered however long your recovery may take.

Commercial Insurance Coverage 

Especially in today’s litigious world, your business needs every type of financial protection it can get. Commerical insurance is a great way to keep your company and reputation protected. 

That’s why Bosworth & Associates offers an incredibly comprehensive list, including property, automobile, builder’s risk, cyber liability, employment practices, flood insurance, general liability insurance, workers compensation, umbrella, and more. 

A note on cyber liability: Whether you’re an individual or the owner of a business, cyber liability insurance is becoming more and more important. Today’s world exists in large part on the internet. From your business to your social life, the cyber world holds the key to your life’s information. Especially if you own a business that handles large amounts of personal and financial information, cyber liability is important to make sure you’re covered in the event the information becomes compromised. Data breaches happen more and more frequently, on large and small scales. Cyber security helps ensure you and your business are covered in the event of a cyber attack. 

You don’t want to be caught out without protection in the event you need flood insurance, medical malpractice insurance, property insurance, and/or other insurance necessary for the security of you, your loved ones, or your business. 

Call your trusted local insurance provider today and ask about what insurance might be best for you.